Make In India: Investments on hold, but Siemens is bullish on long term opportunities in India

Siemens India has a diversified presence but has been hurt, like its peers, by the slowdown in capital expenditure (capex) and problems in the power sector.Rachita Prasad | ET Bureau | February 17, 2016, 08:13 IST

Traditionally, Siemens has been investing Rs 200-250 crore a year in India but Mathur declined to comment on the investment for 2015-16 or the next fiscal.MUMBAI: German engineering and capital goods major Siemens, one of the early multinationals to ‘Make in India’, has put a pause on investments in India but is bullish on the long-term opportunities in the country.

Siemens India has a diversified presence but has been hurt, like its peers, by the slowdown in capital expenditure (capex) and problems in the power sector.

While there is recovery in other businesses that cater to power transmission — railways and roads sectors — the company awaits signs of sustainable and consistent recovery in the economy, chief executive officer Sunil Mathur told ET. “At a macroeconomic level, things could not have been better for India. A lot of structural changes introduced by the government are good and were needed by the country. But now the question is how we achieve sustainable growth,” Mathur said.

“Private capex is not happening. Factory utilisation is down, which means demand had to be infused into the system. The demand will only come when government spending is ignited.”

In September last year, parent company Siemens AG committed to invest ¤1 billion in India to add 4,000 jobs to its existing workforce of 16,000, becoming the first major European conglomerate to commit to Prime Minister Narendra Modi’s ‘Make in India’ initiative.

Traditionally, Siemens has been investing Rs 200-250 crore a year in India but Mathur declined to comment on the investment for 2015-16 or the next fiscal.